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EU Urged to Rule Against Boeing Deal

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(Reuters)

European antitrust experts unanimously advised the European Union to rule against the $13.4-billion Boeing Co.-McDonnell Douglas Corp. merger, setting the stage for a transatlantic dispute. Their call was echoed by political leaders in Germany and France, with French President Jacques Chirac saying the merger could be dangerous for European industry. EU officials said they don’t expect a compromise before July 23, when the EU’s executive commission is to make its final decision. Germany’s Daimler-Benz Aerospace and France’s Aerospatiale are the main partners in Airbus Industrie, the European plane maker that is Boeing’s main rival. Despite the EU stance, Seattle-based Boeing said it will stick to its guns by refusing to make further concessions. “We have negotiated in good faith. We have taken very seriously each of the commission’s concerns and have made a sincere effort to put forward substantial remedies in each of the areas,” Boeing Vice President Jim Frank said.

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